Durable goods orders jump, but capital spending sags in April

Orders for long-lasting U.S. manufactured goods unexpectedly rose in April, but a drop in a measure of business capital spending plans could temper expectations for a sharp rebound in economic growth this quarter.

Durable goods range from toasters to aircraft and are meant to last three years or more. Orders advanced by a revised 3.6 percent in March. Economists polled by Reuters had forecast durable goods orders falling 0.5 percent last month after a previously reported 2.5 percent rise in March.

Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, fell 1.2 percent after rising by a revised 4.7 percent in March, which was the largest gain since November.

Tim Boyle | Bloomberg | Getty Images

Economists had expected orders for these so-called core capital goods to rise 0.2 percent last month after a previously reported 2.9 percent jump in March.

The report could cause economists to dial down expectations for a sharp rise in growth in the second quarter after the economy sputtered in the first three months of the year.